The Barbados Light & Power Company Ltd

• Jurisdiction: Barbados
• Court: Fair Trading Commission (Barbados)
• Judge: Sir Neville Nicholls,Mr. Andrew Brathwaite,Mr. Gregory Hazzard,Mr. Alfred Knight,Mr. Andrew Willoughby
• Judgment Date: 25 February 2010
• Docket Number: NO. 0002/09

In the Matter of the Utilities Regulation Act, CAP. 282 of the Laws of Barbados;

In the Matter of the Utilities Regulation (Procedural) Rules, 2003;

And in the Matter of the Application by the Barbados Light & Power Company Limited (the Applicant) for a review of electricity rates pursuant to Section 16 of the Utilities Regulation Act, CAP. 282 of the Laws of Barbados;

The Barbados Light & Power Company Limited

Applicant

Before:

Sir Neville Nicholls Chairman

Mr. Andrew Brathwaite Commissioner

Mr. Gregory Hazzard Commissioner

Mr. Alfred Knight Commissioner

Mr. Andrew Willoughby Commissioner

NO. 0002/09

FAIR TRADING COMMISSION

INTERVENORS

Barbados Association of Retired Persons (BARP) in association with Public Counsel

Barbados Small Business Association (BSBA) in association with Public Counsel

Barbados Association of Non Governmental Organisations (BANGO)

Barbados Consumers Research Organisation, Inc. (BARCRO)

Dr. Roland Clarke

Mr. Errol E. Niles, Attorney-at-Law

Mr. Douglas B. Trotman, Attorney-at-Law

CANBAR Technical Services Ltd.

ORDER

1 Following the hearing of the Barbados Light and Power Company Limited's (BL&P) Rate Review Application and by Decision and Order dated January 25, 2010 the Fair Trading Commission ordered the BL&P to submit to the Commission, within two weeks of issuance of the Decision and Order, a revised rate schedule along with detailed tables showing proof of revenue similar to that provided in response to Question 33 of the Commission's Interrogatories Series #1.

2 In compliance with the Commission's Decision and Order the BL&P filed its revised rate schedule and accompanying documentation with the Commission on February 11, 2010 and subsequently amended on February 24, 2010.

3 UPON READING the revised rate schedule, detailed tables showing proof of revenue and other accompanying documentation;

IT IS HEREBY ORDERED AS FOLLOWS:-

• 1. The rate schedules K1-K8 contained at Appendix 1 are approved.

• 2. The Commission hereby orders that the new rates be effective from March 1, 2010 and shall be applied to all bills from March 1, 2010.

Dated this 25 ^th day of February 2010

Original signed by: ……………………………….. Neville V. Nicholls Chairman	Original signed by: ………………………………….. Gregory F.M. Hazzard Commissioner
Original signed by: ……………………………….. Andrew F. Brathwaite Commissioner	Original signed by: ………………………………….. Alfred W. Knight Commissioner
Original signed by: ………………………………. Andrew W. Willoughby Commissioner

The Barbados Light & Power Company Limited

K-1: TARIFF FOR DOMESTIC SERVICE (DS)

APPLICATION

4 This tariff is available to residential customers who occupy for domestic purposes individually-metered dwelling houses, apartments or condominiums suitable for year-round family occupancy. The residence shall be occupied by the owner or shall be the principal place of residence for the occupant.

TYPE OF SERVICE

5 Under this tariff, the Company will supply single-phase alternating current electricity at 50 Hz, and one of the secondary voltages specified in the latest revision of the Company's booklet entitled “Information and Requirements Covering Installation of Electric Services and Meters”.

CONDITIONS OF SERVICE

6 Single phase, 2 or 3 wire services up to a maximum of 200 amperes are eligible for this tariff. This tariff is not applicable to customers who occupy dwelling units used or registered for the purpose of transient occupancy such as rooming houses, hotels, guest-houses or villas, or primarily for commercial, industrial or non-domestic activities. No service may be transmitted from a customer who receives electric service to another premises without the prior written consent of the Company.

GENERAL PROVISIONS

7 When two or more rates are available for certain classes of service, the choice of such rates rests with the customer. The Company will at any time, upon request, advise any customer as to the rate best suited to existing or anticipated service requirements, as defined by the customer. The Company does not assume responsibility for the selection of such rate or the continuance of the lowest annual cost under the selected rate. A customer, having selected a rate, may not change to another rate within a 12-month period unless there is a substantial change in the character or conditions of the service. In the case of a new service, customers will be given reasonable opportunity to determine their service requirements before selecting their preferred rate.

MONTHLY RATE

• 1) Customer Charge — This applies to each electricity service under this tariff for the fixed costs of providing service including the service installation, meter reading, billing and customer service costs. The monthly Customer Charge is determined by the customer's 30 day average kWh consumption over the previous 12 months, or as many months during the past 12 months as are available.

  • i) 0 – 150 kWh $ 6/ month + $0.90 VAT = $6.90/month

  • ii) 151–500 kWh $10/ month + $1.50 VAT = $11.50/month

  • iii) Over 500kWh $14 / month + $2.10 VAT = $16.10/month

• 2) Base Energy Charge – This applies to each electricity service under this tariff for all other costs associated with the provision of this service, except the cost of fuel.

  • i) First 150 kWh @ $ 0.150 /kWh + $0.0225 VAT = $0.1725 /kWh

  • ii) Next 350 kWh @ $ 0.176/kWh + $0.0264 VAT = $0.2024 /kWh

  • iii) Next 1000 kWh @ $ 0.200/kWh + $0.03 VAT = $0.230 /kWh

  • iv) Over 1500 kWh @ $ 0.224/kWh + $0.0336 VAT = $0.2576 /kWh

• 3) Fuel Charge – This applies to each electricity service under this tariff for the cost of fuel associated with the provision of this service.

  All kWh at the Fuel Clause Adjustment (cents/kWh) + VAT

8 The Fuel Clause Adjustment is calculated according to the Fuel Clause approved by the Fair Trading Commission and may vary from month to month.

MINIMUM BILL

9 The minimum bill shall be the applicable Customer Charge.

DISCOUNT

10 A 10% discount on the Customer Charge and the Base Energy Charge is allowed if payment is made in full within 15 calendar days of the date of issue of the bill. The discount does not apply to the Fuel Charge portion of the bill.

METER READING AND BILLING

11 The meters of Domestic Service customers are normally read every other month but these accounts are billed monthly. In the month when the meters are not read, the customers' bills are estimated based on an average of their previous energy consumption.

RULES AND REGULATIONS

12 Service under this schedule is subject to the orders of the Fair Trading Commission and the latest publication of the “Information and Requirements Covering Installation of Electric Services and Meters”. In case of a difference of interpretation between any provision of this schedule and the “Information and Requirements Covering Installation of Electric Services and Meters” booklet, the provision of this schedule shall apply. A bill calculated under this tariff is subject to change under the provisions of such applicable rider(s) as may be approved and / or amended by the Fair Trading Commission.

K-2: TARIFF FOR GENERAL SERVICE (GS)

APPLICATION

13 This tariff is available to all customers who meet the required conditions of service.

TYPE OF SERVICE

14 Under this tariff, the Company will supply single-phase alternating current electricity at 50 Hz, and one of the nominal secondary voltages specified in the latest revision of the Company's booklet entitled “Information and Requirements Covering Installation of Electric Services and Meters”. Three-phase service may be furnished but only under special arrangements.

CONDITIONS OF SERVICE

15 Single phase, 2 or 3 wire services up to a maximum of 10 kVA are eligible for this tariff. No service may be transmitted from a customer who receives service to another premises without the prior written consent of the Company.

GENERAL PROVISIONS

16 When two or more rates are available for certain classes of service, the choice of such rates rests with the customer. The Company will at any time, upon request, advise any customer as to the rate best suited to existing or anticipated service requirements, as defined by the customer. The Company does not assume responsibility for the selection of such rate or the continuance of the lowest annual cost under the rate selected. A customer, having selected a rate, may not change to another rate within a 12-month period unless there is a substantial change in the character or conditions of the service. In the case of a new service, customers will be given reasonable opportunity to determine their service requirements before selecting their preferred rate.

MONTHLY RATE

• 1) Customer Charge — This applies to each electricity service under this tariff for the fixed costs of providing service including the service installation, meter reading, billing and customer service costs. The monthly customer charge is determined by the customer's 30 day average kWh consumption over the previous 12 months, or as many months during the past 12 months as are available.

  • i) 0 – 100 kWh $ 8/month + $1.20 VAT = $9.20/month

  • ii) 101 – 500 kWh $ 11/month + $1.65 VAT = $12.65/month

  • iii) Over 500 kWh $ 14/month + $2.10 VAT = $16.10/month

• 2) Base Energy Charge — This applies to each electricity service under this tariff for all other costs directly associated with the provision of this service, except the cost of fuel.

  • i) First 100 kWh $ 0.184/kWh + $0.0276 VAT = $0.2116 /kWh

  • ii) Next 400 kWh $ 0.217/kWh + $0.03255 VAT = $0.24955 /kWh

  • iii) Next 1000 kWh $ 0.259/kWh + $0.03885 VAT = $0.29785 /kWh

  • iv) Over 1500 kWh $ 0.290/kWh + $0.0435 VAT = $0.3335 /kWh

• 3) Fuel Charge — This applies to each electricity service under this tariff for the cost of fuel associated with the provision of this service.

  All kWh at the Fuel Clause Adjustment (cents/kWh) + VAT

17 The Fuel Clause Adjustment is...